Reference no: EM132642188

1. The following are selected transactions of Grouper Department Store Ltd. for the current year ended December 31. Grouper is a private company operating in the province of Manitoba where PST is 8% and GST is 5%. PDSL follows ASPE and has a periodic inventory system.

2. On April 1, Grouper purchased a truck for $56,000 from Schuler Motors Limited, paying $12,880 cash and signing a one-year, 8% note for the balance of the purchase price. Provincial sales tax of 8% and GST of 5% were charged by the supplier on the purchase price.

3. On May 1, Grouper borrowed $75,000 from First Provincial Bank by signing a $80,100 non-interest-bearing note due one year from May 1.

4. On June 30 and December 31, Grouper remitted cheques for $18,800 each as instalments on its current year tax liability.

5. On August 14, Grouper's board of directors declared a $13,000 cash dividend that was payable on September 10 to shareholders of record on August 31.

Problem 1: Prepare all the journal entries necessary to record the above transactions when they occurred and any adjusting journal entries relative to the transactions that would be required to present financial statements at December 31 in accordance with GAAP.